Dáil Éireann díospóireacht -
Tuesday, 30 Sep 2003

Vol. 571 No. 1

Written Answers. - Tax Collection.

Seán Ryan

Ceist:

150 Mr. S. Ryan asked the Minister for Finance the progress which has been made by the Revenue Commissioners in their discussions with the Portuguese authorities with a view to closing off a tax loophole which allows those who sell off assets here to avoid tax by taking up residence is such countries as Portugal; and if he will make a statement on the matter. [20771/03]

Minister for Finance (Mr. McCreevy)

In response to a parliamentary question on 28 May 2003 I stated that I had been informed by the Revenue Commissioners that a first round of negotiations for a protocol to amend certain provisions of the Ireland-Portugal Double Taxation Convention was held between the relevant Irish and Portuguese tax officials in Lisbon on 19 to 21 May 2003. The discussions between the Revenue Commissioners and the Portuguese authorities are still continuing but I am advised by the Revenue Commissioners that it is not possible at this time to predict the outcome or when negotiations might be concluded.

I should also explain that section 69 of the Finance Act, 2003, contains an amendment to Irish domestic law which imposes a charge to capital gains tax on an individual in respect of a deemed disposal of certain assets on the last day of the last year of assessment for which the individual is taxable in the State, prior to becoming taxable elsewhere, where the individual disposes of these assets while resident outside the State and returns to the State within five years. I announced this anti-avoidance measure in my 2003 budget on 4 December 2002 with effect from that date.